Caspian Energy Journal Caspian European Club
Most read
Friday, 06 November 2015 19:00

West becoming more active on the eastern shore of Caspian Featured

Transit opportunities of Georgia and Azerbaijan to be more preferable - President of Azerbaijan Ilham Aliyev


Issues of development of the Southern Gas Corridor and development of the energy sphere were discussed at the meeting of Presidents of Azerbaijan and Georgia held in Tbilisi. President of Kazakhstan had meetings with the US State Secretary, President of France and Prime Minister of Great Britain. As a result, bilateral contracts worth billions of dollars were signed. President of Turkmenistan also discussed issues of the energy sector development with the US State Secretary. RF Ministry of Energy is predicting growth of investments in the FEC even despite the low oil prices. Iran announced about forecasts of the energy development and is getting ready to export LNG.



Meeting of President of the Republic of Azerbaijan Ilham Aliyev and President of Georgia Georgi Margvelashvili took place in Tbilisi on November 5. I am confident that the results of my visit will have a positive impact on development of relations between the two countries. Georgia is a very close country and partner for us. We successfully cooperate in different areas and this cooperating is gradually expanding. We very much want our bilateral relations to develop much faster and cover all areas”, President Ilham Aliyev said.

“We have exemplary neighbor relations, cooperation and joint strategic projects. However, I am confident Mr. President that your official visit to Georgia will deepen our cooperation and give impulse to our relations in all areas”, President of Georgia Giorgi Margvelashvili noted.

Prospects of cooperation in economic, infrastructural, energy, railway, humanitarian and other spheres were discussed at the meeting. After completion of the meeting President Ilham Aliyev and President of Georgia Giorgi Margvelashvili signed a joint declaration between the Republic of Azerbaijan and Georgia.

The declaration envisages deepening of relations in the field of policy, security, trade and economy, transit, culture, education and science. According to the declaration, the parties will continue a strategic dialogue, concerning regional and global issues, deepen cooperation in economic sphere, promote investments growth, conduct high-level dialogue on energy issues, develop, in case of necessity, the Southern gas corridor with participation of business-circles, continue operations on gasification of Georgia, build electricity transmission lines, develop and expand a Silk Way, promote tourism, cooperation of small and medium enterprises.

“We have broadly discussed both energy and transport issues and once again expressed our will: these issues, these projects should be implemented soon, in particular the Southern Gas Corridor, which is now well underway. There would be no grounds for the Southern Gas Corridor without Baku-Supsa, Baku-Tbilisi-Ceyhan, Baku-Tbilisi-Erzurum oil and gas pipelines which were built in due time”, President of the Republic of Azerbaijan Ilham Aliyev said (November 5) at the joint press conference held together with President of Georgia Giorgi Margvelashvili.

According to him, today the Southern Gas Corridor is of great economic and political importance for Georgia, Azerbaijan and Europe. “This project is being successfully implemented. I believe even larger volumes of Azerbaijan gas will be delivered in 2018 to Turkey, and in 2020 to Europe. I believe this is the largest energy project implemented in Europe now,” Ilham Aliyev said, noting that the Southern Gas Corridor shall spend at least $45 billion.

The president of Azerbaijan also said Azerbaijan has very rich and large gas reserves. “Proved gas reserves amount to 2.6 trillion cubic meters. This means that for at least 100 years to come Azerbaijan will be able to meet own gas demand and supply the neighboring countries and European countries,” he stressed.

According to him, “joint efforts of Azerbaijan and Georgia, our common position in the future will secure a greater reliability of the corridor.”

In this way, the geopolitical significance of our countries is growing, which will certainly increase our revenues as well”, the head of state of Azerbaijan said.

He also noted that Azerbaijan had recently established the Coordination Council on transit cargo. We want Georgia and Azerbaijan to speak with one voice on issues of transportation. We can pursue a common tariff policy to substantially increase the volume of goods passing through our territory. This is possible. I believe that in the future the countries where goods will be delivered can conduct joint presentations. There is competition for goods in today's world. The main thing is that this competition should be sound. In this case, the transit opportunities offered by Georgia and Azerbaijan will, of course, be preferable, President Ilham Aliyev emphasized.

We successfully cooperate in the economic sphere. We want our turnover to increase further. Of course, the mutual interest is quite high. Azerbaijan invests a lot in Georgia. Georgia is a very attractive country for investments. Your country has established an excellent investment climate, the head of state of Azerbaijan noted.

“Joint large-scale energy, transport projects Baku-Tbilisi-Ceyhan, Baku-Tbilisi-Erzurum, Southern Gas Corridor, Baku-Tbilisi-Kars raise the significance of our countries not only in the region but in the whole world. These projects promote the development not only of the whole region but make a big contribution to the restoration of the historical Silk Way as well.

Together with its partners Azerbaijan plays an important role in meeting energy needs of Europe. We have already proved that we are reliable partners and ensuring uninterrupted, stable and safe operation of the oil-gas and transport infrastructure created by our own efforts is of importance for all parties”, the head of state of Azerbaijan said.

According to him, the joint declaration will contribute to the development and expansion of the bilateral cooperation. “Our successful cooperation in political, economic, energy, transport, investment, humanitarian and other spheres has splendid results. However, I assume there is a big potential for further expansion of our economic relations, growth of the trade turnover”, President Ilham Aliyev resumed.

Georgia attaches big importance to creation of much broader opportunities for transportation of energy resources and products of Azerbaijan to Europe. President of Georgia Giorgi Margvelashvili stated in Tbilisi at the joint press conference held with President of the Republic of Azerbaijan Ilham Aliyev.

Projects that Azerbaijan and Georgia implement together are of big importance for Europe. The head of state of Georgia said and spoke about directions of expansion of cooperation in energy and transport spheres.

“We are currently witnessing much broader development of modern Azerbaijan. President Ilham Aliyev’s role in this development process is important and significant”, President Margvelashvili stated, assuring that Georgia will always stay close to friendly Azerbaijan, our strategic cooperation remains unchanged”.

Emphasizing that Georgia, which tries to benefit from the free trade agreement reached with the EU, is interested in providing these opportunities for Azerbaijani investors and businessmen as well, he said: “I am sure that your current visit to Georgia will create new opportunities for further development of cooperation between our states in political, economic, energy, trade, transport, educational and humanitarian spheres. It will give a new impulse to further expansion of partnership between Georgia and Azerbaijan”.




Major vectors of development of FEC were discussed at the annual Caspian Technical Conference and Exhibition of the Society of Petroleum Engineers (SPE) held in Baku on November 4-6.

Recoverable oil reserves in Azerbaijan make 2 billion tonnes, and gas reserves stay at 2 trillion 550 cubic meters of gas. First Vice-President on Geology, Geophysics and Field Development of SOCAR Khoshbakht Yusifzadeh has said today (November 04) at SPE Caspian 2015, Annual Caspian Technical Conference and Exhibition of the Society of Petroleum Engineers in Baku.

According to Khoshbakht Yusifzadeh, projected oil reserves in Azerbaijan make 2 billion tonnes, gas reserves - 3 trillion 450 billion cubic meters.

Khoshbakht Yusifzadeh said the recoverable hydrocarbon reserves in Azerbaijan comprise 4 trillion 550 billion tonnes of oil equivalent (toe), and projected stay at 5 trillion 450 billion toe.

So, the total hydrocarbon reserves in Azerbaijan comprise 10 trillion toe.

Daily production from 85 wells at Azeri-Chirag-Guneshli (ACG) fields located in the Azeri sector of the Caspian Sea totals 87000 tonnes of oil and 33 mln cubic meters of gas, he said. According to him, 26 mln tonnes of oil and 10 bcm of gas were produced at ACG fields within 10 months of this year. Of this total 17 mln tonnes of oil or 65% fell to the share of profit oil of Azerbaijan.

31.5 mln tonnes of oil and 12.5 bcm of gas were produced on wells in 2014.

A total of 380 mln tonnes of oil and 714 bcm of gas were produced since the launch of development of ACG fields until November 1, 2015. The share of profit oil in the total volume reached 209 mln tonnes of oil.

Primary reserves in place at Azeri-Chyrag-Gunashli fields (ACG) in the Azerbaijani sector are estimated at $2 trillion 200 billion tonnes of oil, recoverable reserves at about 1 billion tonnes of oil. Thus, he said, the recovery rate is 45%.

According to him, given the output in 2015, ACG will produce 385 million tonnes of oil, accounting for 17% of the primary reserves.

With the new equipment and technology ACG will produce 700 million tonnes by 2060. Respectively, the recovery rate will be 50%, said Yusifzadeh.

Moreover, he noted, there are stocks lower the productive strata of ACG fields, which are not covered by the PSA contract. It is about Podkirmakinskaya, Nadkirmakinskaya sand and kala suites, he said. “This enables to speak about 8 wells drilled in the 80s of the last century. And according to the latest estimates, the lower horizons contain 28 million tonnes of gas condensate and 233 billion cubic meters of gas,” said Yusifzadeh.

He also noted that 396 mln tonnes of oil were exported to the world markets along the export pipelines of Azerbaijan till November 1 of this year. Of this total, 288 mln tonnes were exported along BTC. The rest volumes flew by Baku-Supsa, Baku-Novorossiysk oil pipelines and railroad. This year Azerbaijan has exported 28 mln tonnes of oil. Of this total 24 mln tonnes were exported by BTC.

Khoshbakht Yusifzadeh also noted that oil industry would in future promote Azerbaijan’s development as well.

A total of 66 bcm of gas has been produced at Shah Deniz field, located in the Azeri sector of the Caspian Sea, since the commencement of production in December 2004 until November 1, 2015, Khoshbakht Yusfizade said.

According to him, 4.8 bcm of gas was exported to Georgia over the period under review. 36 bcm was exported to Turkey. 550mln and 4.8 bcm of gas extracted at Shah Deniz field were exported to Georgia and Turkey within 10 months of this year respectively.

K.Yusifzade also noted that Azeri gas will reach Europe in 2019. The first volume will make 10 bcm of gas per year. Then it is planned to increase volumes of supplies until 20 bcm of gas per year.

The Southern Gas Corridor estimated as a major strategic project for energy security of Europe is capable of ensuring energy security of Europe in coming 100 years, Deputy Minister of Energy of Azerbaijan Natig Abbasov said.

According to him, the strategic importance of the SGC project, not limited by Azerbaijan, Turkey and the region, is also aimed to help Europe get rid of gas dependence. Natig Abbasov highlighted that this project is in the focus of the world as an alternative source of energy. “At the moment of crisis, which has affected the whole world, Azerbaijan successfully continues implementation of such projects,” the official said.

Azerbaijan fulfills the taken commitments and is ready to continue gas supply to Georgia, Deputy Energy Minister of Azerbaijan Natig Abbasov has told today (November 04) journalists, answering the question about gas supplies to Georgia, while Azerbaijan is buying certain volumes from Russia.

According Natig Abbasov, “an energy balance is drawn in Azerbaijan every year. And oil, gas and electricity produced in Azerbaijan find their destinations there.”

“With regard to purchases from Gazprom, it is common knowledge that there is a methanol plant in operation in Azerbaijan. Gas imported to Azerbaijan imports is sent directly to that plant. Azerbaijan has enough gas, but it is hard to supply energy that is not included in the energy balance,” he stressed.

Natig Abbasov also noted that further changes in tariffs for electricity in Azerbaijan are not considered.

He said the demand for energy will continue to grow in the future. According to Natig Abbasov, production of alternative energy is expensive and now the tariff for wholesale purchase of electricity produced from alternative sources is 4.5 gepiks (0,045 AZN). “Changes of wholesale tariffs for the purchase of alternative energy is also on the agenda now,” said the deputy minister.

Martin Smith, Vice President of BP on development of fields, in his welcoming speech noted the difficulties faced by the oil and gas industry not only in the Caspian region and in the world, due to the ongoing decline in oil prices. However, overall he was optimistic in his forecasts of the current difficulties that can be overcome thanks to new technologies and human resources.

All projects, that the State Oil Company of Azerbaijan is involved in, will be completed on time, Deputy Chief of the SOCAR Investment Department Zaur Gahramanov said at the conference. “It concerns all projects of the Southern Gas Corridor, including Shah Deniz-2, South-Caucasus gas pipeline, TANAP and TAP, which will be completed by 2018”, he said.

According to him, Shah Deniz II gas has been sold and should timely be delivered to the European consumers early in 2020. 

The delivery of Azerbaijan gas to the Trans-Anatolian Natural Gas Pipeline (TANAP) will start in June 2018, TANAP General Manager Saltuk Duzyol said on November 05. SOCAR explained that the pipeline would be built in 2018 and it will need technical gas to check its state.

In his presentation Saltuk Duzyol outlined a number of factors affecting the implementation of the TANAP project. According to him, the classic cost estimate will be $9.5 billion. In addition, he recalled that the length of the TANAP is 1850 km and it will cross 20 provinces, 67 districts and 600 villages in Turkey. Saltuk Duzyol stressed the pipeline will also cross both onshore and offshore areas, some with seismic zones. According to him, the construction season is not very long lasting and it is necessary to take into account all the factors that occur on the way of the project. In conclusion, he said that there are risks such as economic, political instability, market volatility, etc. “We spare no efforts to address all problems faced,” he resumed. Parties to TANAP are SOCAR (58%), BOTAS (30%) and BP (12%).


Kazakhstan  - USA

President of Kazakhstan Nursultan Nazarbayev held a number of meetings – with the US State Secretary John Kerry in Astana, with the Prime Minister of Great Britain David Cameron in London, and the French President Francois Hollande in Paris. During the meeting  J. Kerry expressed his confidence that the close partnership of Kazakhstan and the USA would help in implementation of five institutional reforms and the National Plan "100 specific steps". "The USA are among the biggest investors of Kazakhstan. Today, I have met with representatives of the American Chamber of Commerce in Kazakhstan, and they expressed their satisfaction with the progress they made in Kazakhstan," J. Kerry added.

"When I was in New York I met with President Barack Obama, we discussed the issues of bilateral cooperation. Since the first days of our independence we have been cooperating with the USA, and the people of Kazakhstan are thankful for constant support of our independence and development of the economy. Presently, there are about 500 companies with the American assets are operating in Kazakhstan. We are determined to continue to closely cooperate," the Head of State of Kazakhstan said.

US want to work together with Central Asian countries to support a common New Silk Road project, U.S. Secretary of State John Kerry said at the C5+1 Ministerial Meeting hosted in Samarkand on November 1.

“For our part, we want to broaden and deepen our bilateral relationships through the region. We want to help your economies to diversify and we’d like to see us both develop – all of us together, develop stronger trade and investment ties among each other and with other countries in the region. We want to work together to support a common New Silk Road project. We look forward to working with you to improve border procedures and infrastructure, to remove unnecessary burdens on businesses, and to fight corruption”, John Kerry said.

With regard to energy security and diversification, Secretary Kerry said: “Energy security and diversification would merit our meeting and getting together in the circumstances we are, but we know it’s much more than that. We think that unless our countries take the lead on these issues, we’re not going to see the meaningful progress that we all want to see. And we’ve made a good start on projects like CASA-1000, which is going to create a regional electricity market from Central to South Asia. But everybody here understands we not only can do more, we have to do more, in order to drive home the urgency of growing economically in ways that are green and clean at the same time. Clean energy represents a remarkable market for the future.”

USA and Kazakhstan agreed to hold a full-fledge interdepartmental session of the Commission for strategic partnership in 2016 and continue maintaining high-level cooperation, says the statement of the fourth session of the Kazakhstan-American for strategic partnership. USA congratulated Kazakhstan on completion of the process of entry into WTO and welcomed Kazakhstan’s efforts on use of OECD’s program to implement necessary reforms. The United States highly assessed Kazakhstan’s investments aimed at improvement of the regional cohesion. Both sides admitted the importance of the innovative potential of the private sector and will continue seeking opportunities for supporting the entrepreneurship. Republic of Kazakhstan and USA plan to sign an agreement about observation of the US Law “about tax control over foreign accounts”.

Kazakhstan and USA expressed commitment to fight with climate change through assuming obligations on reduction of emissions at the forth coming 21st conference of parties in Paris. Both countries emphasized the importance of the energy security. USA expressed gratitude to Kazakhstan for placement of the International science-technical center within its territory. 


Kazakhstan-Great Britain

On November 3-4 President of Kazakhstan Nursultan Nazarbayev held negotiations with Prime Minister of Great Britain D.Cameron, former Prime Minister Tony Blayer, management of several large companies, took part in the second session of the Kazakhstan-British intergovernmental commission for trade-economic cooperation.

Major directions of Kazakhstan-British cooperation were discussed during the meeting with the Prime Minister of Great Britain David Cameron. The head of state of Kazakhstan noted that the Prime Minister’s state visit to Kazakhstan gave a powerful impulse for development of the bilateral relations. He underlined that talks held by the Kazakhstan Government members reached considerable agreements with the British side.

David Cameron pointed out that Kazakhstan achieved impressive results in investment, industry and trade. The British Prime Minister also noted that the two countries have a wide range of issues to cover and expressed his wish to discuss the reforms proposed by Nursultan Nazarbayev.

The following bilateral documents were signed at the end of the negotiations: Mutual Legal Assistance Treaty between the Republic of Kazakhstan and the United Kingdom of Great Britain and Northern Ireland; Memorandum of Understanding between the Agency of Kazakhstan for Civil Service Affairs and Anti-Corruption and the Cabinet Office of the United Kingdom;Treaty of participation of the United Kingdom of Great Britain and Northern Ireland in the international specialised exhibition EXPO 2017 in Astana.

Following the meeting, President Nursultan Nazarbayev awarded Prime Minister David Cameron the 1 degree ‘Dostyk’ Award (‘Friendship’).

During the joint briefing the head of state of Kazakhstan noted that the United Kingdom has invested $12 bln in Kazakhstan where 500 companies are operating with the participation of the British capital.

Our business circles signed contracts and memorandums worth $5bln. All these projects are aimed not only at the development of the materials sector of Kazakhstan”, President of Kazakhstan said.

Apart from this, the head of state of Kazakhstan dwelt on the content of agreements signed during his visit and added that they are aimed at future development of the economy. In particular, highlighted were joint projects in the gas, energy, petrochemical and pharmaceutical spheres. Nursultan Nazarbayev pointed out to the agreement about opening of additional air lines between Astana and London, signed with the British side.

President of Kazakhstan Nursultan Nazarbayev had a meeting on November 4 with the Queen of Great Britain and Northern Ireland Elizabeth II.

 During the meeting Nursultan Nazarbayev told the Queen about the results of the visit to the UK, highlighting with pleasure a significant number of agreements signed by the sides. President Nazarbayev also stressed the high value of the British vector in the foreign policy of Kazakhstan, as evidenced by the strong partnership relations not only at the highest level but also among business, academic communities and government agencies of the two countries.

In turn, Elizabeth II also praised the results of the official visit of President Nursultan Nazarbayev to London and expressed confidence that the results will serve to further strengthen the friendly relations between the two countries and prosperity of the peoples of Kazakhstan and the United Kingdom.

Issues for cooperation in the investment sphere and the progress of national plan "100 concrete steps" have been discussed during the meeting with the former British Prime Minister Tony Blayer. It was noted that the action program proposed by the Kazakh President will allow our country to effectively overcome the current global economic situation

The Kazakh President Nursultan Nazarbayev held a meeting with British Foreign Secretary Philip Hammond. During the meeting the sides discussed the main directions of bilateral cooperation between Kazakhstan and the United Kingdom, relevant aspects of the international agenda and regional security issues.

Nursultan Nazarbayev also welcomed planned establishment of the special commission on cooperation between the foreign ministries of the two countries. The task of the commission is to implement all the agreements between Kazakhstan and the UK.

The head of state of Kazakhstan participated in the opening of the second session of the Kazakh-British Intergovernmental Commission on Trade and Economic Cooperation. The event was attended by Prime Minister of Great Britain D.Cameron as well.

In his speech, the President briefed the gathering on key aspects of modern Kazakhstan’s evolution and current economic policy.

Thus, Nursultan Nazarbayev pointed out that the length of borders and a huge territory let Kazakhstan fulfill strategic transport-logistic activities in Eurasia.

The head of state of Kazakhstan touched the rates of development of economy over the period of independence. GDP per capital increased from $700,000 up to $13,000 over these years. “We consider it big success”, Nursultan Nazarbayev said.

The head of state emphasized that a new stage of economic development is on approach today. Nazarbayev stressed that Kazakhstan is entering a new stage of economic development, highlighting plans to create an International Financial Centre in Astana.

“I think that the participation of British companies in this project will be very important,” said the Kazakh leader, inviting British companies to participate in joint projects.

At the end of the meeting the head of state of Kazakhstan invited the British companies to participate in the joint projects. “We do not ask London for anything. We just call you to come to Kazakhstan and earn money with us”, Nursultan Nazarbayev said.

During the official visit to the United Kingdom of Great Britain and Northern Ireland, President of Kazakhstan Nursultan Nazarbayev met with representatives of business circles of Great Britain. The event was also attended by the heads of such companies as "Royal Dutch Shell", "BG Group", "Barclays Bank", "Vitol Group", "De La Rue", "Glencore", and others.

The Head of State thanked the British investors for active work in infrastructure development area, transport and telecommunications, food and light industry, metallurgy and petrochemical industry in Kazakhstan.

Nursultan Nazarbayev also noted the potential for further cooperation, stressing that our country will continue creating unique environment for investors.

At a meeting with chairman of J Rothschild Capital Management Jacob Rothschild the sides shared their thoughts on the prospects of investment cooperation between Kazakhstan and the UK. Nursultan Nazarbayev told the British businessman about the plans to create an international financial center in Astana and expressed interest in strengthening further partnership. J. Rothschild, in turn, said Kazakhstan has all that it takes to become the financial hub of the Central Asian region.

At the meeting with chairman and CEO of ArcelorMittal Lakshmi Mittal the sides discussed the prospects of cooperation in metallurgy sector. President Nazarbayev said that the industry has become volatile due to recent changes in the global minerals market, stressing the company needs to step up to efforts to maintain its current output level. Lakshmi Mittal, in turn, thanked Nursultan Nazarbayev for creating favorable conditions for foreign investors in Kazakhstan.

Head of State Nursultan Nazarbayev has met with CEO of Hikma Pharmaceuticals Said Darwazah, during his official trip to London. The issues of cooperation in pharmaceuticals sector were in spotlight of the parties. As the President noted, the ongoing operations of Hikma Pharmaceuticals in Kazakhstan arouse great interest in our country. In turn, Said Darwazah emphasized that Kazakhstan had huge potential for the development of its pharmaceuticals industry.

Implementation of joint geological exploration projects was on agenda of the Kazakh President's meeting with Director General of Rio Tinto Sam Walsh. The parties discussed also such areas of cooperation as transfer of up-to-date technologies of survey and exploration and training of Kazakhstani specialists. The Head of State expressed confidence in fruitful and successful collaboration. According to Sam Walsh, Kazakhstan is of great interest for Rio Tinto, as the company has already been operating in Kazakhstan. In the course of his official trip to the UK, Head of State Nursultan Nazarbayev has met with Chief Executive Officer of Shell Concern Ben van Beurden. The parties discussed the prospects of further development of cooperation in energy and petro-chemical industries."Throughout the period of its operation in Kazakhstan, Shell has implemented a number of large projects and turned into one of the leading investors for Kazakhstan economy," the President said. In turn, Ben van Beurden noted that cooperation with Kazakhstan was one of priority areas of the Concern's activity. Ben van Beurden congratulated also N. Nazarbayev on 550th anniversary of the Kazakh Khana.

The session of the Kazakhstan-British intergovernmental commission for trade-economic, science-technical and cultural cooperation took place in the course of the official visit of the President of the Republic of Kazakhstan to Great Britain. A number of memoranda of understanding and cooperation were signed, including between JSC "KazTransGas" and Independent Power Corporation PLC. The memorandum envisages construction of four gas-turbine power stations along the planned gas pipeline "Sary-Arka", which is intended for gasification of Astana, as well as the northern and central regions of the country.

The document stipulates that the British partners will finance construction of four gas-turbine power plants in Astana, Karaganda, Temirtau and Zhezkazgan with a nominal capacity of 400 MW each. The planned amount of investments is $ 3 billion 100 million.


Kazakhstan – France

President of Kazakhstan Nursultan Nazarbayev held a November 5 a meeting with President of the French Republic François Hollande. During the meeting in narrow and expanded format the heads of state discussed the main areas of the bilateral cooperation and exchanged views on hot international issues.

The president of Kazakhstan said France is one of the most important partners of the Republic of Kazakhstan, and today the two countries have a full understanding on different aspects of economy and politics.

Also, Nursultan Nazarbayev and Francois Hollande discussed implementation of the agreements reached during the recent visit of the president of France to Kazakhstan.

The head of state of Kazakhstan stressed currently Astana and Paris have a great potential to cooperate in trade, economy, investment, cultural and humanitarian areas, as well as aerospace industry.

After the talks the following documents were approved: the Joint Declaration of the President of the Republic of Kazakhstan and the President of the French Republic; the Treaty of Participation of the French Republic in the International specialized exhibition EXPO-2017 in Astana; the Declaration of Intentions in the field of development of space cooperation between the Aerospace Committee of the Republic of Kazakhstan MIR and the National Centre for Space Studies of France; the Joint Declaration of the Ministry of Education and Science of the Republic of Kazakhstan and the Ministry of Higher Education and Research of the French Republic.

On November 5 President of Kazakhstan Nursultan Nazarbayev held negotiations with executives of leading companies of France in Paris.

Addressing the meeting participants, the head of state of Kazakhstan emphasized that many of them operate in Kazakhstan and are well familiar with the potential and long-term prospects of Kazakhstan.

“For instance, 24 French companies have already implemented projects in Kazakhstan worth over $2bln. 14 projects are under implementation. 10 more projects shall be realized in future. Contracts worth over $5bln will be signed within the framework of my visit alone”, President of Kazakhstan said. 

Besides, Nursultan Nazarbayev dwelt on trade-economic and investment cooperation of the two countries.

“France is among the leading economic partners of Kazakhstan. In spite of the difficult external conditions, our mutual trade turnover in recent years remains at $6 billion. Over the last decade, French business investment in our economy amounted to about $12 billion. One-hundred and thirty French companies are operating in various industries of Kazakhstan’s market”, the head of state said.

The head of state mentioned successful joint companies such as Alstom Transport, Eurocopter, PeugeotCitroën and Danone. In cooperation with Airbus Defence and Space, he noted Kazakhstan has launched two satellites for Earth remote sensing and plans to complete the construction of a spacecraft assembly and testing complex.

Among the joint investment projects the head of state underlined the work carried out together with Airbus.

“Kazakhstan has opened a plant for production of high-technology products out of our titanium, which is used for assemblage of Airbus planes. Kazakhstan’s Company Air Astana completes the cycle as it operates planes produced by the French aviation industry”, President of Kazakhstan said.

According to the head of state of Kazakhstan, opening of direct air lines between Astana and Paris as well as introduction of the visa-free regime for investors has a positive impact on the investment cooperation.

Apart from this, the President noted that contracts are being prepared between the two countries’ business circles covering important areas such as the supply of uranium to France, the automobile industry, water supply and waste disposal.

Nazarbayev also highlighted Kazakhstan’s work on improving the investment climate and implementing five institutional reforms, the 100 Step Plan of the Nation and Nurly Zhol programme, as well as preparing for EXPO 2017.

The Kazakh President invited French businesses to actively participate in his country’s industrialisation and planned privatisation of large enterprises, as well as in the work of the planned Astana International Financial Centre.

In turn, French company leaders praised the ongoing policy for building a favourable investment climate in Kazakhstan, noting the country has established itself as a reliable partner.

The event was attended by representatives of companies such as Airbus, Alstom Transport, Areva, the Rothschild Group, Soufflet, Veolia Asia and Vicat.

Nazarbayev held separate meetings with PSA Peugeot Citroën Chairman Carlos Tavares, Total CEO Patrick Pouyanné, Aubert & Duval President Georges Duval and economist Jacques Attali.

On the same day President Nursultan Nazarbayev met with Chairman of Peugeot Citroen Carlos Tavares in Paris.

The sides have discussed prospects of cooperation of Kazakhstan with the automakers, its activities and expanding its presence in our country.

C.Tavares has informed the President about joint work with Kazakhstani partners for two years, the production of the final products and the plans to export to the markets of neighboring countries.

Head of State Nursultan Nazarbayev has met with President of Aubert&Duval Georges Duval and President of JSC Ust-Kamenogorsk Titanium Magnesium Plant Assem Mamutova. The issues of cooperation in metallurgy sector were on agenda of the meeting. As the Head of State noted, joint operations of the two enterprises are an important component of Kazakhstan's industrialization program. The President was also briefed about the companies' work on expansion of manufacture of titanium and magnesium products for machinery and instrumentation sectors.

During the meeting with Chief Executive Officer of Total Patrick Pouyanné the parties discussed the main areas of interaction in hydrocarbons extraction. The Kazakh President noted that active and long-standing operation of the company in Kazakhstan allowed to gain strong experience of constructive cooperation. In turn, Mr. Pouyanné told N.Nazarbayev about the course of development of Kashagan deposit and implementation of other investment projects in Kazakhstan. 

Kazakhstan President Nursultan Nazarbayev met with French economist and politician Jacques Attali. During the meeting the sides discussed the situation on global markets, ways to overcome recessionary tendencies in the world economy. The expert highly appreciated the effectiveness of Kazakhstan’s programme of action in the current situation - Five institutional reform plan and the National Plan “100 concrete steps”. In addition, the parties touched upon the prospects of infrastructural reforms in our country.


Turkmenistan - USA

President of Turkmenistan Gurbanguly Berdimuhamedow met with US Secretary of State John Kerry in Ashgabat. Both sides confirmed their readiness for further joint efforts to promote global peace and security and counteract modern challenges and threats, which are a concern for all of humanity.

The two sides discussed regional and international issues of mutual interest, including the troubles in Afghanistan.
Both sides confirmed their readiness for further joint efforts to promote global peace and security and counteract modern challenges and threats, which are a concern for all of humanity.

The significant role played by Turkmenistan’s neutral, peaceful, constructive foreign policy was stressed as it was an important factor in ensuring stability and creating conditions for sustainable development in the Central Asian region.

Berdimuhamedow also expressed gratitude to the United States for supporting Turkmenistan’s neutral status and especially for its constructive position in adopting the resolution of the UN General Assembly on Turkmenistan's permanent neutrality.

Turkmenistan has a long border with Afghanistan. It participates in a number of interregional projects, including the construction of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, which is supported by the White House.
The message said the representatives of large businesses in the United States had shown great interest in expanding their participation in the promising Turkmen market and taking part in new joint projects.

The promising areas of partnership between Turkmenistan and the United States include the energy sector, transport and communications, industry, agriculture, and advanced technology.



This week RF Ministry of Energy has announced about increase of investments, made into the oil-gas sector of RF in 2015, by 20% (up to 1.188 trillion RUB). Minister of Energy Alexander Novak told journalists about it.

“As far as the investments to be made in Russian currency, they will be higher than in 2014, the minister said. The size of investments made into the oil-gas sector last year was 985 bln. This year we expect them to be 1.188 trillion RUB. We will see what plans companies set for the next year”.

Novak added that the decision about cancellation of the export duty for oil will certainly require to revise investment plans for 2016.

Meanwhile, the Central Bank of RF predicts a long period of low prices. 2015 became a year of the initial adaptation of the Russian economy to new conditions. Head of the Bank of Russia Elvira Nabiulina, who presented a project of the main directions of the single monetary policy for 2016 and 2017-2018 to the deputies of the State Duma, made this statement.

According to her, new conditions first of all mean decline of oil prices and closing of many external financial markets. “Not only the price decline for oil occurred. To all appearances a structural transformation of the oil market is occurring. As a result, prices can stay low for a longer period”, she emphasized.

“We expect oil prices to stay on low level in the foreseeable future”, she continued.

“Our monetary policy is based on the economic growth forecasts. We are considering three possible scenarios depending on the oil prices. But I would like to note that no matter which scenario occurs, we are capable of controlling inflation and reducing it down to 4% by the end of 2017%”, she noted.

“According to the basic scenario, oil prices will stay at $50 per barrel throughout the whole three-year period. The consumer price growth will slow down together with the exhaustion of the effect of the external factors that played a prominent role in the first half and in the middle of this year; exchange rate dynamics is also expected to normalise. With the stabilisation and subsequent reduction in inflation expectations during 2015, the baseline scenario predicts a gradual easing of the monetary policy. The more pronounced the downward trend in inflation and inflation expectations will be, the more accommodative the monetary policy may become.

In the baseline scenario we expect that rates of the economic growth of Russia will remain negative in the next year as well. There will be slight positive figures reached in 2017, which can total 2,0-3,0% in 2018”, the head of the Bank of RF noted. 

 The second scenario is optimistic. It envisages a gradual growth of oil prices up to 70-80 by 2018. There is also a risky scenario envisaging $40 per barrel or lower figure in 2016-2018”, E.Nabiulina continued.

“In conditions of high uncertainty about the prospects not only of the oil market by the global economy, we think it is important to be ready for the most unfavorable course of events. It is a reason why we consider a risky scenario. In case of increase of the risks, we are ready to use the entire arsenal of instruments we have, including sale of foreign currency for maintaining the financial stability, increase of volumes of the monetary refinancing”, the head of Bank of Russia resumed.



Managing Director of the Iranian Offshore Engineering and Construction Company (IOEC) Gholamreza Manouchehri told Shana that foreign financers are interested in Iran’s post-sanction oil and gas projects, Shana notes.

Referring to Phase 11 development and Iran-Oman gas pipeline to be carried out by the IOEC, he said both domestic and foreign firms are interested in cooperation with competent authorized partners.

The gasline project includes laying the 400-kilometer land-sea pipeline from Iran to Oman. According to initial available data, the land part of the gas pipeline extends for 200 kilometers from Rudan to Mobark Mount in southern Hormozgan Province. The seabed section between Iran and Sohar Port in Oman will stretch for another 200 kilometers.

In the meantime, an official in the National Iranian Oil Company (NIOC) said the talks for financing the offshore section of Phase 11 in the joint field have not been finalized.

“No option has been decided so far,” Abdolmajid Delparish, the company’s director of consolidated planning told Shana.

On the other hand, General Secretary of the Gas Exporting Countries Forum Mohammad Hossein Adeli stated that Iran can export its gas by using both options: either via pipelines or as LNG, IRNA reports.

Mohammad Hossein Adeli emphasized that Iran possesses sufficient amount of natural gas and high potential for broad presence at global markets.

Earlier, the general secretary of GECF has already mentioned about the forth coming forum in Tehran, where participation of high ranking officials of all 18 member states of GECF is expected. According to Adeli, the Tehran summit will be of particular importance as heads of state and high ranking officials are going to attend.

Heads of 18 member states of GECF, gas giants of the world, will arrive in Tehran to attend the summit on November 23 of this year.

The National Iranian Drilling Company (NIDC) and the Italian oil firm Eni signed Monday (November 02) a draft MoU on expansion of bilateral cooperation in drilling industries, said the NIDC Vice-President Mohammad-Reza Takayedi.

“Negotiations are underway with European firms including ENI and Saipem from Italy and an MoU was signed. It is expected that agreements will be finalized with the Italian companies,” he said.

“We have also been negotiating with a qualified German company on drilling services, investment, and exchange of technology,” he added.

Takayedi also said that NIDC is ready to export its technical and engineering services in oil and gas drilling to neighboring Iraq.  “We hope to finalize the talks on signing drilling contracts with Iraq in few months.”

According to Takayedi, firms from Turkey are also in negotiations over drilling projects. 


Jeyhun Bayramov


Caspian Energy journal


Read 1953 times